Buying your home for the first time can be one of the biggest investments you’ll ever make in your life.
As owning a home is a big commitment and a huge financial responsibility, it is essential to take home ownership as a serious investment through your preparations.
And that preparation includes setting your expectations.
In this guide, we will share everything you need to expect when buying your first home to help you get the details right from start to finish in your home buying journey.
When preparing to buy a house, initially ask yourself:
Is it the perfect time for me to purchase a home?
You should note that you shouldn’t buy a home just because the rest of the adults you know are doing it, nor just because of low mortgage rates available in the market.
It would be best if you bought a home when you’re ready, and buying a home means having stable finances.
When buying a home, make sure you consider some of the main costs like:
– Down payments
– Closing costs
– Moving-in expenses
– Knowing what to expect in terms of expenditures will help you ensure you have enough money in the bank for all these.
Besides that, considering your finances in the bank will also help you figure out what house you can afford. It will be easier for you to find a home with a specific price range based on your income, debt, and even credit score.
Strength Of Your Credit Score
Expect that your credit score will become a vital factor in determining if you will qualify for a mortgage or not. Your credit score will also definitely affect the interest rates lenders are to offer you.
In this case, ensure you check on the strength of your credit.
Here are some of the simple steps you can take to strengthen your credit score to buy a house:
– Claim copies of your credit reports from your credit bureaus
– Pay your bills on time and keep your credit card balances as low as possible
– Keep all your current credit cards
– Track your credit score
Mortgage Options And Pre-approval
When buying a home for the first time, there are various mortgages available that might be the perfect fit for you.
Some of the primary mortgage categories are:
– Conventional mortgages
– FHA loans
– USDA loans
– VA loans
Aside from considering mortgage options that may be the best choice for your unique situation, expect you would need to have a mortgage pre-approval letter too.
Having a mortgage pre-approval letter will help home sellers and real estate agents to see how much loan a lender offers to loan you under specific terms and conditions.
Choosing Your Real Estate Agent
When preparing to buy your first home, expect you would need to go through the process of choosing a real agent carefully.
An excellent real estate agent can help you scout the best homes available in the market, perfect for your needs.
Aside from that, it is the real estate agent’s role to guide you in your home’s negotiation and closing process.
How do I choose a real estate agent?
Getting agent referrals from recent home buyers might help you get the best one. Try interviewing a few potential agents and get to know how they can assist first time buyers like you. This will help you find a real estate agent that you find comfortable working with.
Consider the Pros And Cons Of Your Home Choices
Expect to have days where you ask yourself:
Is this the perfect neighborhood for me?
Will this home’s location fit my lifestyle?
Does the size of this home have the extra space if I decide to grow my family?
Weighing your potential home’s pros and cons is definitely important to check if the area and the neighborhood fit your way of life.
From its distance to your workplace, the grocery, hospitals, schools, and churches to the situation within your neighborhood- all of these things will help you choose the perfect home for you.
Besides your mortgage loan costs, consider the price you also have to pay for a home inspection and prepare to pay for it as soon as you’re ready to look for homes.
Paying for a home inspection is vital to help you assess the home’s structure and mechanical systems before moving into the property.
Professional home inspectors help you identify potential problems within the property to help you make an informed decision when buying the property.
Your lender may require you to buy homeowners insurance before closing the deal.
Thus, expect that homeowners insurance may be an added cost on your end.
Home insurances are a big help in covering the cost of repair and replacement within the property
you decide to purchase. Overall, home insurance covers the cost of rebuilding the home in such a case it is destroyed.
Purchasing your first home is a life-changing event. Guarantee yourself the best home buying experience by setting expectations along your home buying journey.